DoD awards $17.2M for Okinawa building conversion, Gilbane Federal wins construction contract

Contract Overview

Contract Amount: $17,249,472 ($17.2M)

Contractor: Gilbane Federal

Awarding Agency: Department of Defense

Start Date: 2025-12-17

End Date: 2027-12-30

Contract Duration: 743 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONVERSION OF BUILDING 4203 TO SECURE SPACE, CAMP COURTNEY, OKINAWA, JAPAN

Plain-Language Summary

Department of Defense obligated $17.2 million to GILBANE FEDERAL for work described as: CONVERSION OF BUILDING 4203 TO SECURE SPACE, CAMP COURTNEY, OKINAWA, JAPAN Key points: 1. Contract value appears reasonable for a large-scale construction project in a high-cost overseas location. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Project duration of over two years indicates a significant undertaking with potential for schedule risks. 4. Fixed-price contract type shifts cost risk to the contractor, but scope creep could still impact final cost. 5. This project aligns with DoD's ongoing efforts to modernize infrastructure and enhance operational security at overseas bases. 6. The contractor, Gilbane Federal, has a substantial track record with government contracts, suggesting experience in this domain.

Value Assessment

Rating: good

The contract value of $17.2 million for converting Building 4203 to secure space at Camp Courtney, Okinawa, Japan, appears to be within a reasonable range for a project of this nature and location. While direct comparisons are difficult without specific project details and local market data, large-scale construction and renovation projects in overseas military installations often incur higher costs due to logistics, specialized labor, and compliance requirements. The firm fixed-price nature of the contract provides cost certainty, assuming the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders participating, the competition level suggests a degree of market interest. This process is designed to foster price discovery and encourage competitive pricing, which is generally beneficial for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. The presence of multiple bidders increases the likelihood of securing a fair market price for the construction services.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel stationed at Camp Courtney, Okinawa, who will gain access to secure facilities. The project will deliver a converted building, enhancing operational security and potentially improving working conditions for military and civilian staff. The geographic impact is localized to Camp Courtney, Okinawa, Japan, supporting U.S. military presence in the Indo-Pacific region. Workforce implications include the creation of construction jobs, potentially utilizing both local and U.S. labor, depending on contracting stipulations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or scope changes arise, despite the firm fixed-price contract.
Schedule delays are a common risk in large construction projects, especially in overseas locations with logistical challenges.
Ensuring compliance with Japanese building codes and environmental regulations adds complexity and potential for delays.
Quality control and assurance throughout the extended construction period will be critical to meeting security requirements.

Positive Signals

Firm fixed-price contract provides cost certainty for the government, assuming scope is well-defined.
Full and open competition suggests a robust bidding process, likely resulting in competitive pricing.
Contractor Gilbane Federal has extensive experience with large-scale government construction projects.
The project addresses a clear need for secure facilities, enhancing operational readiness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on government infrastructure development. The market for such projects is substantial, driven by ongoing military modernization and base infrastructure needs globally. Comparable spending benchmarks for secure facility conversions in high-cost overseas locations can vary significantly based on size, complexity, and specific security requirements. This project represents a targeted investment in enhancing operational capabilities at a key strategic location.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale construction project, it is unlikely that significant subcontracting opportunities for small businesses will be mandated unless specified within the contract's terms. The primary focus appears to be on securing a qualified large contractor capable of executing the complex requirements of the project. Further review of the contract details would be needed to ascertain any specific small business subcontracting goals.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, potentially through contracting officers' representatives (CORs) and quality assurance personnel on-site at Camp Courtney. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. The firm fixed-price nature necessitates close monitoring of performance and adherence to the defined scope to prevent cost overruns.

Related Government Programs

Military Construction, Army
Facilities Sustainment, Restoration, and Modernization (FSRM)
Overseas Contingency Operations (OCO) - if applicable
Department of Defense Construction Projects
Secure Facility Construction

Risk Flags

Potential for schedule delays due to overseas location and complexity.
Risk of unforeseen site conditions impacting cost and schedule.
Ensuring adherence to Japanese building codes and environmental standards.
Scope creep management under a firm fixed-price contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 million to GILBANE FEDERAL. CONVERSION OF BUILDING 4203 TO SECURE SPACE, CAMP COURTNEY, OKINAWA, JAPAN

Who is the contractor on this award?

The obligated recipient is GILBANE FEDERAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $17.2 million.

What is the period of performance?

Start: 2025-12-17. End: 2027-12-30.

What is Gilbane Federal's track record with similar secure facility conversion projects for the Department of Defense, particularly in overseas locations?

Gilbane Federal has a significant history of executing large-scale construction and renovation projects for the Department of Defense, including work on secure facilities and overseas bases. Their portfolio often includes projects involving complex requirements, such as upgrades to command centers, sensitive compartmented information facilities (SCIFs), and other secure operational spaces. While specific details on Okinawa-based secure conversions are not provided here, their extensive experience suggests a strong capability to manage the technical, logistical, and security demands inherent in such projects. Past performance reviews and contract databases would offer more granular insights into their success rates, adherence to schedule and budget, and overall client satisfaction on comparable endeavors.

How does the $17.2 million cost compare to similar secure building conversion projects undertaken by the DoD in Japan or other high-cost Pacific regions?

Benchmarking the $17.2 million cost requires detailed comparison with projects of similar scope, size, and security classification in comparable geographic locations. Construction costs in Japan, particularly on U.S. military installations, are generally higher than in the continental U.S. due to factors like import/export duties, specialized labor rates, logistical challenges, and stringent regulatory compliance. Without specific project metrics (e.g., square footage, specific security features, duration of conversion), a precise comparison is difficult. However, for a substantial conversion project aimed at creating secure space, this figure appears plausible within the context of high-cost overseas environments. Further analysis would involve examining cost-per-square-foot metrics for similar DoD projects in the region.

What are the primary risks associated with a firm fixed-price contract for a project of this duration (over two years) and complexity?

The primary risk with a firm fixed-price (FFP) contract, especially for a long-duration project like this (743 days), is the potential for unforeseen issues to arise that were not adequately accounted for during the initial bidding phase. While the FFP shifts cost risk to the contractor, significant scope creep, discovery of hazardous materials, unexpected site conditions, or major design changes requested by the government could lead to costly change orders or disputes. For the government, the risk is paying a premium upfront to cover the contractor's contingency for these unknowns. Delays caused by factors outside the contractor's control (e.g., material shortages, permitting issues) can also strain the relationship and potentially impact project completion, even under an FFP.

What specific security enhancements or features are anticipated in the conversion of Building 4203?

The term 'secure space' typically implies enhancements designed to protect sensitive information, personnel, or operations. While the specific details of the security enhancements are not provided in the summary data, common features in such conversions include reinforced structures, advanced access control systems (biometrics, multi-factor authentication), intrusion detection systems, enhanced cybersecurity infrastructure (secure network cabling, hardened server rooms), blast-resistant windows and doors, and potentially specialized environmental controls or power redundancy. The exact nature of the security requirements would be detailed in the contract's Statement of Work (SOW) and associated technical specifications, tailored to the intended use of the converted space.

How does this $17.2M contract fit into the broader context of U.S. military infrastructure spending in the Indo-Pacific region?

This $17.2 million contract is part of a larger, multi-billion dollar investment strategy by the U.S. Department of Defense to modernize and strengthen its infrastructure across the Indo-Pacific region. This region is a strategic priority, and significant funds are allocated towards enhancing base capabilities, improving force projection, and ensuring operational readiness. Projects like the conversion of Building 4203 contribute to this goal by upgrading essential facilities to meet evolving security and operational demands. This specific award represents a localized investment within a much broader regional infrastructure development effort aimed at bolstering U.S. presence and deterrence.

What are the potential implications of awarding this contract to Gilbane Federal, given their experience, on future competition for similar projects?

Awarding this contract to Gilbane Federal, a company with substantial experience in government construction, reinforces their position as a capable contractor for large-scale, secure facility projects. This experience can be a positive signal for future competitions, suggesting reliability and proven performance. However, it also means that competitors will need to demonstrate comparable expertise and potentially offer more competitive pricing or innovative solutions to win future bids. The government benefits from working with experienced contractors, but agencies also strive to foster a competitive environment that includes emerging players. Gilbane's success here might encourage other firms to enhance their capabilities to compete more effectively on similar future contracts.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1220 CONCORD AVE, CONCORD, CA, 94520

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,249,472

Exercised Options: $17,249,472

Current Obligation: $17,249,472

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline